Fantasy gaming booms again, with statutory caution

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Fan engagement is the name of the game for businesses trying to monetise live sport, outside the ambit of broadcasters and their sponsorships. Fantasy gaming companies are reaping returns, going by the spurt they see in trade volumes. It is an industry that had to address a long-drawn battle for legal acceptance when it began. Once it kicked off, the graph has moved only one way, and steeply. Companies on the platform attracted two million users in early days, in June 2016. Those numbers grew exponentially to over 90 million by last December.

It has brought in a host of operators--the number has zoomed from 10 to over 140. Fantasty gaming platforms charge a Contest Entry Amount (CEA) that netted R1,743 crore in March 2018, and touched R16,467 in March 2020, according to a study on the business done by international accounting firm KPMG.

With live sport resuming after over two months of lock down due to the Covid-19 pandemic, business is again booming.

Starting from advertising and subscription revenue for broadcasters and OTT platforms, to sponsorship revenue in leagues and tournaments and spend on brand ambassadors and player tie-ups, the Online Fantasy System (OFS) is finding more traction. Dream XI, the most prominent player with a user base of over 75 million, is a key sponsor for BCCI and IPL. My11Circle has former India skipper and current BCCI president, Sourav Ganguly, as its face.

The overall Indian OFS revenue went from R920 crore in March 2019 to R2,470 crore in 12 months, driven by growth in fee and users. What started as a platform to connect better with fans has become a new industry.